GXO Logistics Inc (GXO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.75 | 3.83 | 3.92 | 3.27 | 3.26 | 3.27 | 3.29 | 3.39 | 3.49 | 3.43 | 3.44 | 3.04 | 3.09 | 3.11 | 2.46 | 2.44 | 2.32 |
Based on the solvency ratios of GXO Logistics Inc, the company demonstrates strong financial health in terms of its debt obligations and capital structure.
- Debt-to-assets ratio: GXO Logistics Inc consistently maintains a debt-to-assets ratio of 0.00, indicating that the company does not rely heavily on debt to finance its operations and possesses a strong ability to cover its liabilities through its assets.
- Debt-to-capital ratio: The debt-to-capital ratio also remains at 0.00 across the periods, showing that the company's capital structure is not heavily reliant on debt financing.
- Debt-to-equity ratio: With a constant debt-to-equity ratio of 0.00, GXO Logistics Inc reveals a conservative approach towards debt usage in financing its operations, while also highlighting a healthy balance between debt and equity in its capital structure.
- Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's debt financing in relation to its equity, shows a relatively stable trend ranging from 2.32 to 3.92. This indicates that while there is a slight increase in leverage over time, it is still within reasonable limits and suggests that GXO Logistics Inc has a manageable level of financial leverage.
In summary, GXO Logistics Inc's solvency ratios reflect a low level of debt dependency, a well-balanced capital structure, and a moderate but manageable degree of financial leverage, all of which contribute to the company's overall financial stability and solvency.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.79 | 1.60 | 2.10 | 2.63 | 3.53 | 6.35 | 7.13 | 7.80 | 13.41 | 15.54 | 15.52 | 15.30 | 13.00 | 11.18 | 9.39 | 3.45 | 1.79 |
GXO Logistics Inc's interest coverage ratio has shown fluctuations over the years, reflecting its ability to cover interest payments on its debt.
At the end of December 2020, the interest coverage ratio was 1.79, indicating that the company's operating income was only sufficient to cover its interest expenses 1.79 times. This could be a concerning sign as a low interest coverage ratio implies a higher risk of default.
However, the interest coverage ratio improved significantly in the following quarters, reaching a peak of 15.54 at the end of September 2022. This indicates that the company's operating income was more than sufficient to cover its interest expenses, demonstrating a strong financial position.
Subsequently, the interest coverage ratio started to decline, dropping to 1.60 at the end of September 2024. This decrease may raise some concerns about the company's ability to meet its debt obligations with its current level of earnings.
Overall, GXO Logistics Inc's interest coverage ratio has shown both strengths and weaknesses over the years, highlighting the importance of monitoring this ratio to assess the company's financial health and ability to service its debt.